Using the information in the chapter, suppose Home doubles in size and Foreign remains the same. Show

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Using the information in the chapter, suppose Home doubles in size and Foreign remains the same. Show that an equal proportional increase in capital and labor at Home will change the relative price of computers, wage, rental on capital, and the amount traded but not the pattern of trade.
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International Economics

ISBN: 978-1429278447

3rd edition

Authors: Robert C. Feenstra, Alan M. Taylor

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